I move:
(1) THAT for the purposes of the tax charged by virtue of section 95 of the Finance Act 1999 (No. 2 of 1999), that Act be amended, with effect as on and from 29 August 2026, by the substitution of the following for Schedule 2 to that Act (as amended by section 2(3) of the Finance Act 2026 (No. 24 of 2026)):
"SCHEDULE 2
RATES OF MINERAL OIL TAX
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Light Oil: Rates per 1,000 litres |
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Heavy Oil: Rates per 1,000 litres |
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Liquefied Petroleum Gas: Rates per 1,000 litres |
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With effect as on and from: |
Petrol |
Aviation gasoline |
Used as a propellant |
Used for air navigation |
Used for private pleasure navigation |
Kerosene used other than as a propellant |
Fuel oil |
Other heavy oil |
Used as a propellant |
Other liquefied petroleum gas |
Vehicle gas: Rate per megawatt hour at gross calorific value |
|
10 March 2022 |
€474.11 |
€474.11 |
€413.51 |
€413.51 |
€413.51 |
€84.84 |
€118.01 |
€120.55 |
€118.27 |
€54.68 |
€9.36 |
|
1 April 2022 |
€465.98 |
€465.98 |
€405.38 |
€405.38 |
€405.38 |
€84.84 |
€118.01 |
€120.55 |
€118.27 |
€54.68 |
€9.36 |
|
1 May 2022 |
€465.98 |
€465.98 |
€405.38 |
€405.38 |
€405.38 |
€103.83 |
€141.12 |
€111.14 |
€130.52 |
€66.93 |
€9.36 |
|
12 October 2022 |
€483.34 |
€483.34 |
€425.45 |
€425.45 |
€425.45 |
€103.83 |
€141.12 |
€111.14 |
€130.52 |
€66.93 |
€9.36 |
|
1 May 2023 |
€483.34 |
€483.34 |
€425.45 |
€425.45 |
€425.45 |
€122.83 |
€164.23 |
€131.47 |
€142.76 |
€79.17 |
€9.36 |
|
1 June 2023 |
€532.12 |
€532.12 |
€466.10 |
€466.10 |
€466.10 |
€122.83 |
€164.23 |
€140.28 |
€142.76 |
€79.17 |
€9.36 |
|
1 September 2023 |
€589.03 |
€589.03 |
€506.75 |
€506.75 |
€506.75 |
€122.83 |
€164.23 |
€149.09 |
€142.76 |
€79.17 |
€9.36 |
|
11 October 2023 |
€606.39 |
€606.39 |
€526.83 |
€526.83 |
€526.83 |
€122.83 |
€164.23 |
€149.09 |
€142.76 |
€79.17 |
€9.36 |
|
1 April 2024 |
€638.91 |
€638.91 |
€551.22 |
€551.22 |
€551.22 |
€122.83 |
€164.23 |
€163.96 |
€142.76 |
€79.17 |
€9.36 |
|
1 May 2024 |
€638.91 |
€638.91 |
€551.22 |
€551.22 |
€551.22 |
€141.82 |
€187.34 |
€184.30 |
€155.01 |
€91.42 |
€10.13 |
|
1 August 2024 |
€671.43 |
€671.43 |
€575.61 |
€575.61 |
€575.61 |
€141.82 |
€187.34 |
€199.17 |
€155.01 |
€91.42 |
€10.13 |
|
9 October 2024 |
€688.78 |
€688.78 |
€595.68 |
€595.68 |
€595.68 |
€141.82 |
€187.34 |
€199.17 |
€155.01 |
€91.42 |
€10.13 |
|
1 May 2025 |
€688.78 |
€688.78 |
€595.68 |
€595.68 |
€595.68 |
€160.81 |
€210.45 |
€219.50 |
€167.25 |
€103.66 |
€11.48 |
|
8 October 2025 |
€706.14 |
€706.14 |
€615.76 |
€615.76 |
€615.76 |
€160.81 |
€210.45 |
€219.50 |
€167.25 |
€103.66 |
€11.48 |
|
25 March 2026 |
€584.18 |
€584.18 |
€453.15 |
€453.15 |
€453.15 |
€160.81 |
€210.45 |
€193.06 |
€167.25 |
€103.66 |
€11.48 |
|
15 April 2026 |
€502.88 |
€502.88 |
€371.85 |
€371.85 |
€371.85 |
€160.81 |
€210.45 |
€172.14 |
€167.25 |
€103.66 |
€11.48 |
|
14 October 2026 |
€520.23 |
€520.23 |
€391.92 |
€391.92 |
€391.92 |
€179.81 |
€233.57 |
€192.47 |
€179.49 |
€115.90 |
€12.84 |
|
1 November 2026 |
€560.88 |
€560.88 |
€448.83 |
€448.83 |
€448.83 |
€179.81 |
€233.57 |
€216.15 |
€179.49 |
€115.90 |
€12.84 |
|
1 December 2026 |
€601.53 |
€601.53 |
€505.74 |
€505.74 |
€505.74 |
€179.81 |
€233.57 |
€216.15 |
€179.49 |
€115.90 |
€12.84 |
|
31 January 2027 |
€658.44 |
€658.44 |
€570.78 |
€570.78 |
€570.78 |
€179.81 |
€233.57 |
€239.83 |
€179.49 |
€115.90 |
€12.84 |
|
28 February 2027 |
€723.49 |
€723.49 |
€635.83 |
€635.83 |
€635.83 |
€179.81 |
€233.57 |
€239.83 |
€179.49 |
€115.90 |
€12.84 |
|
1 May 2027 |
€723.49 |
€723.49 |
€635.83 |
€635.83 |
€635.83 |
€198.80 |
€256.68 |
€260.16 |
€191.74 |
€128.15 |
€14.20 |
|
13 October 2027 |
€740.85 |
€740.85 |
€655.90 |
€655.90 |
€655.90 |
€198.80 |
€256.68 |
€260.16 |
€191.74 |
€128.15 |
€14.20 |
|
1 May 2028 |
€740.85 |
€740.85 |
€655.90 |
€655.90 |
€655.90 |
€217.80 |
€279.79 |
€280.49 |
€203.98 |
€140.39 |
€15.56 |
|
11 October 2028 |
€758.21 |
€758.21 |
€675.98 |
€675.98 |
€675.98 |
€217.80 |
€279.79 |
€280.49 |
€203.98 |
€140.39 |
€15.56 |
|
1 May 2029 |
€758.21 |
€758.21 |
€675.98 |
€675.98 |
€675.98 |
€236.79 |
€302.90 |
€300.83 |
€216.23 |
€152.64 |
€16.91 |
|
10 October 2029 |
€773.25 |
€773.25 |
€693.38 |
€693.38 |
€693.38 |
€236.79 |
€302.90 |
€300.83 |
€216.23 |
€152.64 |
€16.91 |
|
1 May 2030 |
€773.25 |
€773.25 |
€693.38 |
€693.38 |
€693.38 |
€253.25 |
€322.93 |
€318.45 |
€226.84 |
€163.25 |
€18.09 |
",".
(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).
I want to begin today by being very clear about what this resolution means for the Irish people. The Government has decided to extend the current temporary excise reductions on petrol and diesel from 31 August until 31 October 2026. The increases that were due to take effect next week will now not happen. Mineral oil tax will, therefore, remain reduced on a VAT-inclusive basis by 30 cent per litre for diesel and 25 cent per litre for petrol until the end of October. We are also extending the temporary reduction applying to marked gas oil, or green diesel.
From November onwards, the current intention is that these temporary measures will be restored on a gradual and phased basis, but as we have done throughout this crisis, the Government continues to monitor developments closely. We look at the international situation, the global energy markets and the price at the pumps, and we take decisions based on the circumstances that actually exist at the time, not predictions that people endeavour to make many months in advance. The decision taken by the Government this week provides certainty for September and October. It provides breathing space for families and businesses, and it ensures that, rather than facing a cliff edge, any restoration of these measures can be managed carefully and responsibly.
The estimated cost to the Exchequer from 1 September 2026 until the final restoration on 28 February 2027 is approximately €407 million. This is, by any measure, a significant intervention. Indeed, as colleagues know, it does not stand alone. Since March, the Government has temporarily reduced mineral oil tax on petrol, diesel and green diesel, and has reduced the NORA levy to a nominal amount. Taken together, these measures have delivered savings or reductions to families and businesses of 32 cent per litre of diesel, 27 cent per litre of petrol and 7.4 cent per litre of green diesel. We increased the maximum repayment rate under the diesel rebate scheme from 7.5 cent to 12 cent per litre of qualifying fuel, supporting the road haulage and passenger transport sectors. We provided an additional €152 payment to fuel allowance recipients. We deferred the scheduled May increase in carbon tax and introduced targeted support for highly affected sectors, road transport operators, farmers, farm contractors and fishers. We have also ensured that the enhanced maximum repayment rate under the diesel rebate scheme will now be extended until the end of this year.
Taken together, this Government will have provided more than €1.3 billion in supports over a 12-month period to assist households and businesses with the increased energy costs arising from the conflict in the Middle East.
This is about helping families who have been affected by events that are taking place thousands of kilometres from their homes. It is about supporting businesses that are watching every single increased cost each into their viability. It is about hauliers, farmers and those in other sectors that are essential to keeping parts of our economy moving. It is about recognising a basic reality: when circumstances change, a responsible Government must be capable of changing with them.
Despite some easing in global prices in recent days, international energy markets remain exceptionally volatile. Nobody in this House knows with certainty where the price of oil will be in November. Nobody knows where it will be in January. Nobody knows what geopolitical development may affect markets next week, never mind next year. The Government has a responsibility to respond to the circumstances in front of us, to use the best information available, to act at the right time and, above all, to act in the interests of the Irish people. That is why we have recalibrated our approach and we will remain nimble to respond into the future. That is responsible decision-making in an uncertain world. That is what this resolution does.
We also have a responsibility to level with the people. No government anywhere in the world can completely insulate a country from a global energy shock. No government can indefinitely use the tax system to cancel movements in international commodity markets. To suggest so is dishonest politics.
There is a much bigger issue here. We should not simply ask how we cushion Ireland from this particular energy shock. We should ask how to make Ireland less vulnerable for the next one. This is the second major fossil fuel shock Ireland has experienced in the space of half a decade. That tells us something. Our dependence on imported fuels is not only an environmental vulnerability but a real economic vulnerability. That is why the green transition cannot be presented as something that is being done to households or businesses. It has to be something that works for households and businesses. Good climate policy is also good economic policy. That is why the Government will continue to support households and businesses to make the transition. We need to make it easier and more affordable for households. We need to continue the roll-out of home energy upgrades and retrofitting. We need to support people who want to move to electric vehicles and ensure the charging infrastructure keeps pace. We need to invest in our electricity grid, as we are doing, and we need to accelerate the development of indigenous renewable energy. The prize here is much bigger than just meeting some sort of target. The prize here is an Ireland where households and businesses have greater control over their own energy costs, an Ireland where businesses have access to secure and competitively priced electricity, and an Ireland that is less exposed every time instability erupts in an oil-producing region of the world.
That work is well under way. The national energy affordability task force is looking at energy costs in the round, not just at what the Government can do during the immediate crisis but at structural changes that can reduce costs over the medium and longer terms. The Minister, Deputy Darragh O'Brien, is leading that work on behalf of the Government and it will continue to be a major focus of our work. Our response must operate on two tracks. We have to help people through the crisis in front of us, but we have to reduce our exposure to the next crisis. These are not competing objectives; they are two parts of the same strategy.
I know that amendments and arguments will be advanced today in relation to carbon tax. Let me deal with that directly. I support the carbon tax, as does the programme for Government. I know that many Opposition parties support the carbon tax. Over the summer months, my Department published tax strategy papers giving consideration to issues and options around carbon tax, as it does every year. This presents us with an opportunity to have an informed discussion at Government and in the Oireachtas, but these are matters to be considered in the round and in the context of budgetary decisions. Today is not budget day. We have recalled Dáil Éireann for a specific and immediate purpose. Increases at the pump were due to hit motorists next week and we have decided that should not happen. There was an immediate issue requiring an immediate decision and we wish to take that decision today. The budget will provide the appropriate opportunity to consider broader questions around affordability, taxation policies, fuel poverty and how we support households in the here and now with the real cost-of-living pressures they face. That is the responsible way to make policy: examine the evidence, understand the costs and consequences, and make decisions in the round.
If the last six months have taught us anything, it is how rapidly the world can change. Oil prices can rise and fall and supply routes can be disrupted. We have seen enormous movement in energy markets over just a few short weeks. Locking the Irish taxpayer into decisions many months and possibly years in advance, regardless of what happens internationally, is not certainty but imprudence. We are providing certainty where we can do so responsibly. We are providing certainty in September and October, and as a Government, we continue to keep all matters under review. That is the right way to make the right decision on the basis of the facts that exist at this point.
This is what nimble government looks like; it is what agile government looks like and it is what responsible economic management looks like in a volatile world. Today, we take a decision to give households, motorists and businesses some attempt at breathing space, to give some certainty, to avoid an abrupt increase at the pumps next week, and to retain the flexibility as a Government and as an Oireachtas to continue to respond as we see best on cost-of-living matters in the round in the budget in a few short weeks' time. At the same time, we will not lose sight of the longer-term answer. Our approach is clear, namely, breathing space now, certainty where we can provide it but intensive work towards greater energy independence for the future. That is what this resolution is about and is why I commend the resolution to the House.
It is unusual enough for the Dáil to be recalled during a period of recess but it also happens to be recalled at a time when an esteemed member of our political press gallery is covering proceedings in this Chamber for the very final time. For more than four decades, Senan Molony has held those of us in public life to account. Senan has always brought a great sense of wit and humour to his work, together with curiosity, determination and professionalism. So it just so happens, as I move this resolution today on behalf of the Government, I want to join with many across the political divide in wishing you, Senan, and your family every happiness for a long, fulfilling and very well-deserved retirement.